A 1099 form is used in calculating income tax for

Jose Ruiz manages a car dealer’s service department. His department is organized as a cost center. Costs for a recent quarter ar

notsponge [240]

Answer: Total Cost = $37,900

Explanation:

Responsibility accounting refers to a system where managers of different departments in a company are responsible and held accountable for the management of the controllable costs in their department.

Here the controllable costs on the manager, Jose Ruiz are Cost of parts, the Mechanics wages and Shop supplies.

Calculating the total costs that would appear on a responsibility accounting for the service department would be :

Particulars Amount

Cost of parts $22,400

Mechanics’ wages $14,300

Shop supplies $1,200

Total Cost $37,900

3 0

3 years ago

A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes,

sesenic [268]

Answer:

payback period = 4.275 years

Explanation:

year cash flow balance

0 -150,000 -150,000

1 10,000 -140,000

2 25,000 -115,000

3 50,000 -65,000

4 37,500 -27,500

5 100,000 72,500

payback period is between the fourth and fifth year:

27,500 / 100,000 = 0.275

payback period = 4.275 years

4 0

3 years ago

The company had a net income of $248,462, and depreciation expenses were equal to $72,487. What is the firm's cash flow from fin

Mademuasel [1]

Complete Question:

The complete question can be seen the in the attachment at the end of the solution of the question.

Answer:

Option B. -$182,057

Explanation:

The Cash flow from financing activities can be calculated by using the following formula:

Cash flow from financing activities = Changes in the equity finance

+ Changes in long term borrowings + Changes in short term borrowings

- Interest paid - Dividends paid

Here

Changes in the equity = $175,000 common stock in year 2008

- $125,000 common stock in year 2008 = $50,000

Changes in long term Borrowings = $61,290 - $78,445 = - $17,155

Changes in short term Borrowings = $16,753 - $12,004 = $4749

Interest paid is $0 because interest rate is not given hence we can't calculate it.

Dividends paid = $190,568 Opening Retained Earnings + $248,462 Net Profit for the year - $219,379 Closing Retained Earnings = $219,651

Now, by putting values in the above equations, we have:

Cash flow from financing activities = $50,000 - $17,155 + $4749 - 0 - $219,651 = -$182,057

4 0

3 years ago

If pollution coming from factories is bad, then why would the socially optimal level of pollution not be zero?

Cloud [144]

The socially optimal level of pollution can not be zero, this is because that value is not practical, feasible, efficient or effective. Pollution comes with production processes; production processes can not be stopped because the economy of the nation depend on it, thus pollution is inevitable.
The socially optimal level of pollution is that level at which the marginal benefits derived from the pollution is equal to the marginal cost of production. At this point, the net benefits to the society is maximized.<span />

3 0

4 years ago

"Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because

zhuklara [117]

Answer:

The price per share today will be $57.758

Explanation:

The price per share will be calculated using the constant growth model of the DDM as the dividends will grow at a constant rate forever. However, as DDM is only applicable for a dividend paying company and as the dividend is paid from Year 10 and on wards, we will adjust the DDM formula to calculate the price at Year 9 and discount it back using required rate of return to calculate the price today. The formula for price under constant growth model is,

P0 = D1 / r - g

Where D1 is the dividend in year 1 or next period to calculate price today. As we use the next period's dividend, to calculate the price at year 9, we will use D10 that is $10 per share.

The price at year 9 will be given by this equation,

P9 = 10 / (0.115 - 0.05)

And as we require price today, we will discount it back 9 years. So the price today will be,

P0 = (10 / (0.115 - 0.05) / (1+0.115)^9

P0 = $57.758

6 0

3 years ago